Ridiculous Steam pricing (1$=1€)

Discussion in 'Indie Business' started by oNyx, Dec 20, 2008.

  1. oNyx

    Original Member

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    Steam was already a tad expensive, but now it became downright silly for everyone living in Europe. Amazon is about half the price and you get a disc, a manual, a nice box, and the right to sell it again. Even the department store right around the corner is far cheaper than Steam.

    http://forums.steampowered.com/forums/showthread.php?t=770231

    What were they thinking?
     
  2. jankoM

    Indie Author

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    That is stupid IMHO. The same was with Adobe's products. I was thinking about buying Director but it was 1$ > 1EUR (like $1000 in US and like 1200 EUR here).

    Well (I hope) the market will react appropriately. I sure stopped thinking about buying Director when I saw this.
     
  3. jcottier

    jcottier New Member

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    Not that I really care about Steam pricing policies... but lets not forget that...

    When created, the euro was supposed to be equivalent to 1$. At the moment the $ is low... but it doesn't change the fact that if you are a US citizen and spend 1$ it is supposed to be the same as a europeen citizen spending 1 euros.

    Also don't forget that if you sell any good to Europeen citizen you have to pay the VAT (usually 20%), so don't forget to add that amount when you compare US price with europeen price.

    JC
     
  4. AlexWeldon

    AlexWeldon New Member

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    On the plus side, this works out great for Koreans, who only have to pay 50 Won (5 cents) for a game. Maybe now they'll stop pirating everything. :)

    More seriously, though, many of us often talk about the need to base prices on the local economy, stating that piracy in poor countries is partially due to companies not charging proportionally to the average person's income. Charging more in richer countries is the other side of that coin. Assuming that 50 Euro represents the same proportion of an average person's income as 50 dollars for an American (does it? I don't know), then the problem is not that Valve is charging that on Steam, but that retail prices are still based on converted currency. For me, it's that disparity that's the problem - why would anyone pay 20 Euros more NOT to get the box, manual, etc.? (Yes, I know Steam has some other advantages, but try convincing the average consumer that they're worth paying 67% more for).
     
    #4 AlexWeldon, Dec 20, 2008
    Last edited: Dec 20, 2008
  5. Jack Norton

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    I am using multicurrency too on my site, because I think is silly to think that usd is "the universal currency". You have to take into consideration the cost of living in the various countries.
    BUT - the prices should be fixed (not vary based on currency fluctuation) and should be on line with the standard pricing of retail products.
    Selling COD5 on steam for 50 eur when you can buy it on retail for 30 is totally crazy.
     
  6. Ciardhubh

    Ciardhubh New Member

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    The two currencies are not linked. They develop independently. The Euro was about 117 US cents when it was first introduced. Before the economy went haywire the Euro was as high as 160 US cents. Now it's around 140 US cents.

    The $ price says it includes VAT. As far as I know the US has a VAT, too. So the argument that EU VAT (although a bit higher) makes up for the difference, doesn't explain it all. A 40-60% markup is a "little" too much for 20% VAT, anyway.

    A 1:1 conversion is arbitrary and inflexible. It's very beneficial to Steam and they have the market share to get away with it. They are just taking advantage of the fact that customers are bound to them. You already have some games there, so you might as well buy new ones there, too. Who cares about paying 20-40% extra, right?

    Steam isn't the only system though. For example Gamersgate and Sony Online also have a 1:1 rate. It's a very solid argument against buying there.
     
  7. Bad Sector

    Original Member

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    The interesting aspect is that they basically force the euro prices in countries which do not use euros.

    Also in Greece the incomes are much lower than in most other european countries, so in this case the idea of 'local pricing' goes out of the window. If that was the case, Greeks should pay half the dollar price :p.

    Of course i don't mind the dollar prices, but the $1=€1 and the fact that digital distribution was supposed to be cheaper while in this case it is more expensive looks at least silly to me.

    I believe this will be sorted out though. That, or i will use Steam only for Valve's stuff and use Direct2Drive or Impulse for the rest. They still have the "add non-Steam game in games list" option after all :).
     
  8. magallanes

    magallanes New Member

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    Usually when $1=€1 then €1=£1.
     
  9. Bad Sector

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    Well according to google,

    1 Euro = 1.3914 U.S. dollars
    1 Euro = 0.945437249 British pounds

    So the euro is closer to gbp than is to dollar. I mean, if 1 euro was equal to 1.05 dollars, then people wouldn't complain (that much), but this isn't the case clearly.
     
  10. jcottier

    jcottier New Member

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    Well, don't look at today rates... the £ is currentely extremely low... like it lost 30% of it's value...

    When I was in the uk 3 years ago... the pounds was equivalent to 1.5 euros...
    So, this is why 1£==1euros was scandalous... If you look at today exchange rates, it looks like this is normal... but it is not... again it is just because the £ has been massively hit in the last few months...

    JC
     
  11. vjvj

    Indie Author

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    Yeah, as much as I totally champion Steam all the time, I don't think anyone outside the US really has any reason to use it. They need to sort that shit out.
     
  12. Jack Norton

    Indie Author

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    Indeed being in europe, I looked at steam but will never use it because of the crazy prices. Is cheaper for me to order the retail box from play.com in UK (free of shipping charges) !!! :eek:
     

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